tv [untitled] May 9, 2012 6:30pm-7:00pm PDT
problematic. i wanted to know to what degree does this curriculum take advantage of online or digital -- >> i will say one thing. one thing that we want to emphasize is that this sets of instructional tools is a subset of everything teachers use in the classroom. we do not feel these adopted instructional materials equal the curriculum, so it is our hope that the curriculum is much broader and includes a lot of online resources. >> there are technological components to the materials. a lot of it is on cd, as well accessible online, to teachers and students.
president yee: thank you for all of your work. roll call, please. [roll call] that is unanimous. president yee: thank you very much. board members proposals tonight. none tonight. if i hear no objections from the board, i would like to kick out of order at this time the 2012- 2013 budget development update. superintendent garcia?
>> i will turned over to our deputy superintendent. we thought that before, since the meeting that we are addressing lay offs, we thought it would be in poor and for people to understand what is the situation right now so that people have a little better understanding of why these layoffs are even taking place. >> thank you, superintendent. we are going to use a power plant and we are trying to get the production of -- a powerpoint and we're trying to get the projection up.
ok, so this is going to be fairly short period the purpose -- fairly short period the purpose is to fold, one is to review the information that the board has received. i believe some of this information has been presented at a previous regular meeting of the board. secondly, to provide some updated information to the extent we haven't, and we are on the verge of seeing the may revision numbers come out from sacramento with the governor's proposed revision to the budget. even though in that information is about to be released, we thought, given the occasion and delight of the discussions taking place in the community
with our partners and community members, that it would be timely for us to give an update about the state of our budget and our productions. -- projections. one thing on the state education budget, it is very important that everyone continue to recognize that the governor's proposed budget would hold a general purpose funding for schools flat. that is only if a temporary tax increases are passed. just to review some of the specifics under that, the proposed budget includes zero funding for statutory cost of limits -- cost-of-living adjustment. the cola has been calculated at 3.24. that is not funded at all under the proposed budget. that would increase the deficit
factor to about 22%. the deficit factor represents the percentage of each dollar of general purpose finding that k- 12 schools should be receiving that we will not receive. 78 cents on every dollar of general purpose funding is what we could stand to receive under the governor's proposed budget. that is assuming that the tax is passed. the difference between a fully funded cola and a zero funded colette is about $8 million a year. -- cola is about $8 million a year. even if the tax initiative passes, are projected deficit would grow under the governor's proposal. if the taxes are not approved, proposition 98 funding would be significantly reduced. this next slide, this is a
little bit to -- this is a three-slide presentation. this sort of go together. we have a version of the same information on the school districts website. if anyone wants to look at the version on the website. and i will walk through this step by step. i think it does bear some clarification. i believe there are -- there is a fair amount of confusion and the community about the state of the district's finances and our projections. this is an attempt to try to clarify some of the projections of the next two years. as has been noted several times, the beginning balance for the current fiscal year as of
july 1, 2011, it is a little bit less than $56 million. this is for unrestricted general fund. that is well established, and our balance is sometimes also referred to as our reserves. in the year that we are in, we are in may, that would be the last month of the current fiscal year, we are deficit spending to the tune of about $20 million. we will spend about $20 million of this reserve during the course of this fiscal year. that will lead a $35.3 million beginning balance to carry forward. as of june 30, 2012, what we project, and is subject to change, we would have a $35.3 million balance.
that would be our ending balance for this year and that would become are beginning balance for next year. that means that we would instead of having to $55.8 million fund balance, we would have a $35.3 million fund balance that we would carry into next year. if we look at the governor's proposal with the tax is passing, looking ahead into next year, we will expect to receive $53.9 million less than we need to maintain our current programs. in other words, deficit spending by another $53.9 million. that would take our positive fund balance of $35.3 million
and it would fully deplete that an adult $18.6 million in the red. -- to plead that and we would have $18.6 million in the red. we have to keep a $16.9 million positive fund balance. that is to cover are required reserves and other required reserves. if you take the difference between a -18.6 and a positive 16.9, we have a shortfall for next year of $35.5 million. that is what is shown in the last number and the 12-13 column on the table. looking at the following year, we would began a 13-14 with that
negative fund balance of $18.6 million. but that would be the beginning fund balance of the 13-14. we would project that we would deficit spend by another $47.7 million. that would leave and ending fund balance of -$66.3 million. keeping in mind that we need to keep a positive $70 million fund balance as opposed to a zero fund balance, leawood save and eighth -- we would seek a shortfall in 13-14. this is not a realistic situation because if we were on track to spend down our reserves this quickly and go beyond our zero fund balance, we would not
maintain the autonomy that we have. the state would intervene, whether it is by assigning fiscal trusty or taking over the district. these numbers could not come to pass without triggering some serious intervention by the state. that is the difference between the starting point that we did began this current fiscal year with and what we are on track to overspend by the end of the year after next. this is all based on the scenario in which the governor's tax proposal passes. ok? as noted on the bottom of page 3, these figures do not include any rainy day reserve funds. they reflect the expiration of cost savings provisions of our collective bargaining agreements that have been reached with our
unions for 10-11 and 11-12. because those are set to lapse, these expenditures contemplate that all of those provisions would go away and expenditures would come back into the general fund. there are some positive signs based on what i have just gone through that beginning with the city's rainy day reserves, we are very hopeful that the super -- we are hopeful that the city will support the district with rainy day reserve funds and the maximum draw that we would be eligible for the $6.3 million in 12-13. the following year, up to another $4.7 million. that is based on the amount of money in the reserve.
another positive sign is that we expect the governor to restore state transportation funding in the revision. that is about $7.2 million each year. in his original january budget proposal, he proposed eliminating state funding for transportation. we receive about $7 million annually for that funding. since that january proposal, he has backed off of that and said that he supports maintaining that funding, but he would propose that it become flexible and turned into categorical programs. if he holds true to that in his may revision, we would see the $7.2 million restored in the revenues. another positive thing is that
we are in the process of selling a piece of surplus property, to san francisco state university. that sale was approved by the board several weeks ago. it is in the process of going through the approval processes with the state. should all that come to pass, which we do expect will happen, we would use the proceeds of that property sale to prepay a series of debt obligations and that would allow us to avoid and reduce our debt service costs by about $875,000 a year. that would begin next year. over this two-year. period, these three items together would close that $83
million gap by about $27 million. it would make a meaningful dent in that $83 million gap. on the other hand, we face some significant risks better not in the numbers i just went through. the may revision, we are anxious to see what happens with that, but it has been clear that the budget for the current fiscal year of about revenue collections statewide are not coming to pass. the estimates of the shortfall in the budget versus the actual revenues collected is in the neighborhood of 3-$5 billion. because of that, there is a chance that the funding for education would not maintain that flat funding, but would show funding decrease.
we will seek in about a week or 10 days, i think. the second risk is that, of course, the taxes -- neither of them passes and if that was the case, a lot of the revenues would change. even just with the governor's proposed revenue for schools, that would be about $18 million different each year. $36 million over this time frame for us. i want to close by -- i want to quote from a column that appeared in the sacramento today. it was reprinted in the san francisco examiner.
complex funding system has schools in the wringer. i think it is worth mentioning some of this. i think it is a very useful articulation of a lot of the problems that we're facing. this month, the districts must decide whether to continue or rescind laos on the assumption that they will know the state of their 12-13 finances. that is problematic in any year because the legislature typically does not settle the state budget until weeks or months later. a law passed by voters in 1988 is supposed to governor -- govern what schools receive, but the numbers are subject to annual manipulation. financing has dropped by about $700 per pupil since 2008. thiat best, they can only guessd
hope to adjust if they're wrong. this year is even worse than usual. as the legislature's budget analysts and others have pointed out, the passage of taxes would give k-12 education $2.2 billion to catch up on some deferrals. if taxes are rejected, brown once school districts to lose that and be forced to eat $2.6 billion in school bond payments. the total it would be $7 billion plus, or more than $1,000 per pupil. it closes by saying, if california voters and politicians had sent out to create the most rational school finance system possible, they could not have done a better job. we would not be surprised if they try to improve on the job they have done in the future. that is about it in terms of our presentation. if the commissioners have questions, please let me know. president yee: thank you, deputy
superintendent, for the rosy picture. i have one question. in your budget for the current school year, you have that there is a deficit spending of $20 million. that was anticipated from will develop the budget last year, correct? >> that is correct. president yee: we knew any ways that even though we had the beginning balance of $55 million, we would spend down on that. ok. any other questions? thank you very much.
commissioner maufascommissione't assume passage of the taxes or failure of the taxes? >> we are not quite at that stage where we have a proposed budget to recommend t. we will be there quickly, june 12 is the first reading of the budget resolution. are thinking at this point is to operate on two tracks. to recommend the budget that includes an assumption that the tax is passed at the same time making explicit contingency plans if the taxes do not pass. it is a challenge because it is a very significant difference between the two situations.
more than $80 million each year. but i think that is the best that we can do. we cannot tbe oblivious to the possibility because it is a very real possibility. we want to be balanced by thinking of what might happen if the taxes do pass. i think we will continue to operate on both tracks. president yee: thank you. we will move on to the next item. request to speak regarding general matters is up now. 7:30, right on the spot. i have quite a few cards again. i just want to remind the audience that if you are coming up and will be talking about a
situation, and we did not mention staff names and we do not make this hearing -- bad remarks on anybody. i want to have the first group, up. you have a total of 10 minutes. this will be the harvey milk group. kevin paulson, john, sean, kelly , michael, dara peters, carmen morrison, rich bennett, wendy lee, david, fred, laura smith, rebecca, stephen.
the group itself will have 10 minutes. use it anyway you want. 10 minutes total. not individual. [laughter] nice try. are you ready? ok. go ahead. >> turn on the microphone. >> i came to this board a month ago and asked for a fair and transparent process for the harvey milk silver rights academy. i told you that the interim principal had said that my drug exposed son was just a c students and there was nothing we could do about it. since then, every single iep request we have provided has disappeared. the interim principal has fired the jobs of four women.
the jobs of 31 after-school workers are still in jeopardy. my son has been call date faggot on the schoolyard. this cannot be coincidence. a boy you address the board why so many families -- will you address the board about why so many families are leaving your schools? in five days, a school for 220 students, 65 parents have signed a petition requesting the removal of the interim principal. 100 parents have signed a petition to restore the parent liaison position. 115 have signed a petition requesting that the after-school program be restored print 103 parents have signed a petition asking you to give due process in the selection of the principal. our children are more than just c students. there is something that you can
do about it. [applause] >> august and a teacher at harvey milk for 12 years -- i have been a teacher adds harvey milk for 12 years. i cannot stay and work under this leader. that is a hard decision, but i wanted out there for people to know. we have heard nothing from any of the school board members. we have that are district representative come down, give our community misinformation, cause more of people, cover a lot for our principal's decisions. i hope it is not final. i hope to consider our petitions, are letters, it is not fair that a short sighted council votes has caused so much turmoil in our community and brought us down here again and again. please let us know.
we have put a lot of effort into saving our community. we really need some response. thank you. [applause] >> i'm the parent of a third grader at the harvey milk civil- rights academy. many parents have passed to for help. -- asked you for help. we have heard nothing from you, have not received feedback or intervention. the situation at our school has deteriorated. we have learned that our children are not being adequately supervised during recess and lunch. my daughter has reported that no adult was on the yard to even take them down to lunch. we have been informed that our parent liaison was cut from the budget. in a meeting i was asked to attend yesterday with the
principal and supervisors, she submitted a budget but the position reduced t. she did not inform the community or the parent liaison that she has submitted a budget with these cuts. no action was taken to revise the budget before the april 23 deadline. ignorance of the process is not an acceptable answer. as of tonight, the principal -- this program is an integral part of our children school day. the majority of our families participate in this program, and needed. by not meeting the deadline and refusing to discuss when she will make the decision, she has put at risk the ability for the school to have any program at all. it is not acceptable to put the well-being of our children at risk. we're not here tonight because we have nothing better to do or
we think this is fun. the well-being of our children must be the priority of the leader of our school. we have not experienced this under this principle. i implore you to please take action immediately carried -- immediately. [applause] >> mind name iswendy lee. i am speaking on behalf of our family in hopes of saving our school. we have been in our school for four years. we plan to be there for five years. tonight, ims in my daughter's science fair because i believe this is the last chance to save the school. i am joining the community and asking to have a fair and transparent interview process to find a principal for our school. that is what we ever promised last year. that is what we want. i do not believe that our interim principal is that
person. she is not a good communicator, she is not a leader, she is not a team player. she is dangerous for our children. she knowingly allows bullying honor school grounds without repercussions. she has allowed unsupervised yard time with no adult presence with their children. these examples of risk and neglect are not acceptable to me. i urge you to honor our request for a fair interview process for our principal. thank you. [applause] >> our community is a divided mind. it is starting to get really ugly. teachers, professionals, and parents. there are those who are pleased with the interim principal. there are those who are confused. there are those who think she is not a good fit for our school. not a good fit for our school. we need to fix things quickly.